Drawing entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2014 a partner has borrow cash of Rs. 100/-from his capital as drawing from partnership firm .if he has 1000 as capital . what would be the entry.

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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26 April 2014 Entry in the books of the firm will be,

Respective Partner's Capital A/c. Dr.100
To Cash A/c. Cr.100

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2014 than u sir,
kidly correct me if i wrong .

capital dr...
to.. drawing a/c

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CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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28 April 2014 It is wrong.

To the extent of drawings the capital a/c. of that partner is reduced hence we debit his capital account.

And he is drawing in cash hence cash a/c. is credited.

Regards,
Devanand